Page:United States Statutes at Large Volume 101 Part 3.djvu/376

 101 STAT. 1674

PUBLIC LAW 100-233—JAN. 6, 1988

"(6) If a borrower is required to plan for or to report on how proceeds from the sale of collateral property will be used, the Secretary shall— "(A) notify the borrower of such requirement; and "(B) notify the borrower of the right to the release of funds -^ under this section and the means by which a request for the ^ funds may be made. Regulations. "(7) The Secretary shall issue regulations consistent with this section that— "(A) ensure the release of funds to each borrower; and "(B) establish guidelines for releases under paragraph (3), including a list of expenditures for which funds will normally be released.". SEC. 612. CONSERVATION EASEMENTS. Section 349 (7 U.S.C. 1997) is amended— (1) in subsection (c)(4), by inserting "and other wildlife habitat" after "wetland"; and (2) in subsection (e), by striking out the last period and inserting in lieu thereof the following: "or the difference between the amount of the outstanding loan secured by the land and the current value of the land, whichever is greater.". SEC. 613. INTEREST RATE REDUCTION PROGRAM; DEMONSTRATION PROJECT FOR PURCHASE OF SYSTEM LAND. 7 USC 1999 note. (a) EXTENSION OF PROGRAM FOR 5 YEARS.—Section 1320 of the 7 USC 1999. Food Security Act of 1985 (99 Stat. 1532) is amended by striking out "1988" and inserting in lieu thereof "1993". (b) AMENDMENTS TO PROGRAM.—Section 351 (7 U.S.C. 1999)

Contracts.

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amended— (1) in subsection (b)(l)(C), by striking out "12-month" and inserting in lieu thereof "24-month"; and (2) by adding at the end thereof the following new subsections: "(f) Each Farmers Home Administration county supervisor shall make available to farmers, on request, a list of approved lenders in the area that participate in the Farmers Home Administration guaranteed farm loan programs and other lenders in the area that express a desire to participate in such programs and that request inclusion in the list. "(g) Notwithstanding any other provision of law, each contract of guarantee on a farm loan entered into under this title after the date of the enactment of this subsection shall contain a condition that the lender of the guaranteed loan may not initiate foreclosure action on the loan until 60 days after a determination is made with respect to the eligibility of the borrower thereof to participate in the program under this section.". (c) DEMONSTRATION PROJECT FOR PURCHASE OF SYSTEM LAND.—

Section 351 (7 U.S.C. 1999) is amended by adding after the subsection added by subsection (b) of this section the following new subsection: "(h)(1) During the 3-year period beginning on the date of the enactment of this subsection, the Secretary shall establish and carry out a demonstration project in accordance with this subsection under which the Secretary may issue certificates of eligibility to Farmers Home Administration eligible borrowers to reduce the interest rate paid by the borrowers on loans obtained from legally organized lending institutions and Farm Credit System institutions

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